Understanding How NFTs (Non-Fungible Tokens) Works - Part 1

So many beautiful opportunities and aspect that the crypto space or the world of blockchain offer for us to actually explore around and interact with. Ranging from Defi, trading and even much more. One of it that I so much always find interest in is NFTs which stand for Non-Fungible Tokens. There is quite so much to talk about Nft as it create a massive wave when it rose up to fame in the crypto space years ago.

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Alright, let's start into the introduction to the world of Nft which I will be starting with the definition. So many of us including I, when I first heard the word Nft, I didn't really know much about Nft but I actually was just aware that it was trending, I need to go make detail research and to be aware of some information I wasn't aware of then. Non-Fungible Tokens (NFTs) just as many of us are aware of are actually digital assets that help to show ownership of items and contents built on blockchain.

It share similarities with bitcoin and Ethereum because it is actually a digital assets but beyond that, it differs from them in the sense that Nfts can not really be replicated making them that kind of unique assets built on the blockchain technology. Every Nft actually contains what is called metadata which actually helps to give information about what each assets stand or represents. It helps to know the creator of those Nfts assets so as to maintain the authenticity of the assets of the blockchain technology.

Now let's briefly look at the history of Nfts. The Nfts as an idea started in 2012 on the bitcoin Blockchain. But started fully in 2015 the same year Ethereum was actually launched. Even though it started in 2015, it needs to wait till 2 years later to witness his first breakthrough that takes place in 2017 and that is with the launch of Crypto kitties. Many of us I strongly believe is aware of the Crypto kitties game where you can buy and sell virtual cats. After the launching of the game, it actually gives massive wave and path for Nft to continue to grow and grow to the greater height it is witnessing today. Most especially it actually witnessed a massive growth in 2021 as the introduction of artworks, memes and many more pushing the value of the world of Nfts really high.

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Now before I actually round up for today, I will also like to talk about the uniqueness of Nfts as it stands out among other digital assets. The first point is the fact that it gives that scarcity and ownership feeling. What do I mean by that, it helps to provide creators and even collectors a way where by they can create and trade their digital content. Not only that but couple with the fact that it is also transparent in the market system. That transparency of ownership helps to reduce fraud and even counter fake in the Nft world.

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The other uniqueness I can see witness in Nft is the fact that it create this creator empowerment opportunity. What do I also mean by that, Nfts helps to empower the creators of those digital contents ranging from artworks, meme by giving them the opportunity to monetize their digital contents. This serve as a source of revenue for them in return. As I round up, I will like to establish the fact that Nft has so many different uses in the crypto world ranging from artwork, memes, gaming and many more.

I will like to actually stop here for today and in my next post series, we will be looking into the other aspect of the world of Nfts. So stay turn.